It seems fair to state that one of the fundamental issues of Motorola company is connected with the inability of managers to develop a qualitative long-term strategic plan. According to Howard Anderson (Anderson 2008), Motorola’s senior management never had a sence of urgency, which is fundamental for the modern globalized economics. It means that the plan for the further innovations was based on the wrong data and the intention to protect the existing business positions. At the same time, the company lacked R&D initiatives, which are fundamental for the constant growth of the corporation in the 21st century. The company did not keep pace with the growth of the basic competitors. As a result, Motorola missed the chance to become a dominant market player.
The managerial mistakes had a negative impact on the interpersonal relation inside the organization. The “warring tribes” era undermined the organizational culture of the senior management (Fishman 2014). The basic reason for it was based on the unequal distribution of the company’s profit. Thus, some groups of employees received huge bonuses, which gave them an opportunity to live a rich life. Moreover, the average salary remained the same. Needless to say, that such a situation outraged many departments, which led to the increase of the employee’s turnover. As a result, the attitude of the employees towards the value of the company became worse.
Finally, Motorola faces serious communication challenge. First, it was hard for the company’s sellers to establish positive relations with the customers: “Its customers — the wireless carriers — had a hate-hate relationship with Motorola” (Anderson 2008). It means that the managers did not try to educate their employees in order to optimize the sales techniques. Obviously, the communication barrier between the different levels of management and the common employees was one of the primary reasons for the company to face the crisis.
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Anderson, Howard. (2008). 10 Reasons why Motorola Failed. Network World. Retrieved February 28, 2017 from http://www.networkworld.com/article/2277903/network-security/10-reasons-why-motorola-failed.html
Fishman, Ted. (2014). What Happened to Motorola. Politics and City. Retrieved February 28, 2017 from http://www.chicagomag.com/Chicago-Magazine/September-2014/What-Happened-to-Motorola/